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Fortune Minerals Ltd T.FT

Alternate Symbol(s):  FTMDF

Fortune Minerals Limited is a mining company. It is engaged in the exploration and development of mineral properties in Canada. It is focused on developing the NICO Cobalt-Gold-Bismuth-Copper Project in the Northwest Territories and Alberta that produces a bulk concentrate for shipment to a refinery that it plans to construct in southern Canada. It also owns the satellite Sue-Dianne copper-silver-gold deposit located 25 kilometers (km) north of the NICO Deposit and is a potential future source of incremental mill feed to extend the life of the NICO mill and concentrator. It also maintains the right to repurchase the Arctos anthracite coal deposits in northwest British Columbia. It also has a 100% interest in these 116 hectares of property south of Great Slave Lake with copper, silver, gold, lead and zinc showings. It has a 1% net smelter royalty covering 78 hectares of land positioned in a former silver mining district, located south of the Eldorado mining district at Great Bear Lake.


TSX:FT - Post by User

Post by MoneyMan123456on Mar 19, 2022 11:06am
249 Views
Post# 34527747

Nico Economics

Nico Economics

Here's an interesting look at resource developement from the Ekati Diamond Mine perspective (remote mine north of Yellowknife).

A kimberlite pipe known as the Jay Pipe was to be developed.  The resource had contained diamonds of between 7-10 billion dollars worth (10-12 years mine life).  Permitting was compete and the EA was competed and accepted.  Mining was clear to proceed.

The pipe required a Dike to compete and was reasonably capital intensive from a construction, stripping and operational perspective.  The Ekati mine however contains all mining and processing equipment since it was an operational mine and if fact is still in operations.  Only limited facilities would have to be constructed and all personnel were trained and in place.

Despite the value of the resource, it was determined to be uneconomic to mine.  It actually had a post-tax NPV of postive 610 million, however considering cost escalation and project contingency was deemed uneconomic.
 

The project was abandoned even though permitting and EA were complete and construction was authorized to start.

A somewhat similar story to the Nico deposit.  A great deposit, but uneconomical to mine in the North.  Consider that this was a mine in full operation versus a mine that still has to be fully built and staffed.  Lots of risk for investors. 

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